The Covid-19 pandemic has sent us home and it’s time for Spring Cleaning! Financially-speaking, it’s a good time to plan. Talk to your wealth manager for a free financial planning kit. And, if you’ve a friend who’s lost a job, consider forwarding this to them and we’ll offer them a free initial consultation.
How long can you go?
If you have lost or are facing significantly-reduced income, it’s time to focus on the basics. Prioritize your spending by looking over your recent months and sum them up. A yellow pad is sufficient—a spreadsheet is even better. Then add up your in-cash assets. Divide the assets by the expenses and you’ve got your timeframe; this is how long you can go without the money.
You may have unemployment checks and/or contract or part-time work. To keep it simple, multiply your timeframe, just calculated, by the monthly estimated paychecks and see how much more time you have. You’re looking for a ballpark answer to the question—just enough to settle your nerves and also, create a realistic motivator to find new income!